Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Might also depend on the nature of the new construction. IMO, anyone who has previously bought a brand new home will realize the value of working the kinks out, landscaping, window treatments, paint and other upgrades.
OTOH, 5-months might suggest the buyer found more issues than expected or worthwhile to repair/replace. Is the 5-month old home still under builder 'warranty' and will the builder take care of builder issues/problems for a second buyer inside the first year?
I think it's the former. You usually get a 1 year warranty then a 5-10 year warranty for structural issues.
I think it's the former. You usually get a 1 year warranty then a 5-10 year warranty for structural issues.
^^^Yes. I don't know what the OP's warranty is like, but in our case it's the balance of a 1-yr builder's all inclusive, a 5-yr extended on the kitchen appliances, and a 10-yr structural. That seemed to be typical of other builders here in FL, too.
We are planning to sell our townhouse this spring. It is only a few months old and in a new community where they are currently building more of the same model. My question is, should we price our nearly new townhouse the same as what the brand-new ones are selling for? Or should we ask for slightly less than new since the house has been lived in?
What’s the market? If everything is selling you probably won’t have much of a issue selling. If everything is selling fast builders aren’t going to “give” anything away. There is no reason to give anything away.
If it’s a few months old the warranty will still be in effect. You can easily get a painter or other trades back in there to touch everything up on the walls ceiling etc.
You may have to compete with the builder but it’s not like you’re gonna have to be tens of thousands of dollars below what they are selling. And some people don’t really want to deal with the builders people as far as agents/loan.
I would price it as close as you can to going rate. Truthfully most houses as the phases get completed on the next phase the new houses in that phase go up in price. Usually the older phases get reassessed for property taxes until the whole project is built out.
You can always offer help with closing, leaving window treatments. If you have landscaping....that is not cheap. Most new houses may have front landscaping done but back yards are rarely done.
I would look at your property if you were below the builder's pricing--not equal to or above. A TH has a few characteristics that might matter. If you own an end unit and the builder has already sold remaining end units, you have something the builder can no longer offer. It isn't going to be easy when buyers drive past the model and realize they can check out a new unit after they see yours--and those sales counselors are going to work that angle.
I live in a 64 unit TH community. Neighbors selling while the builder was still here did not fare well in DOM or offers. Sorry, it will be tough, especially FSBO against the builder's platoon of sales counselors sitting in a designer model.
A new home will usually have a 1 or 2 yr warranty. A resale will not have the full warranty, and even if you purchase a home warranty, the actual coverage/ease of use sucks vs a builder warranty.
I would look at your property if you were below the builder's pricing--not equal to or above. A TH has a few characteristics that might matter. If you own an end unit and the builder has already sold remaining end units, you have something the builder can no longer offer. It isn't going to be easy when buyers drive past the model and realize they can check out a new unit after they see yours--and those sales counselors are going to work that angle.
I live in a 64 unit TH community. Neighbors selling while the builder was still here did not fare well in DOM or offers. Sorry, it will be tough, especially FSBO against the builder's platoon of sales counselors sitting in a designer model.
well said!
does your townhouse offer anything the builder can't?
is the same model townhome already selling for more than you paid?
is the builder offering upgrades?
most of the buying traffic coming to that neighborhood is going to have an agent (most, not all). How will those people know of or find your home? Is someone at your home during the day, and can accomodate showings?
Like it or not, there's a strong chance that you'll incur some selling costs (aka Realtor commission). You can certainly list with an Entry-Only firm that gets you MLS exposure, and which may have terms that should you find an unrepresented Buyer, all you owe is their $500-1000 upfront fee.
But if a Realtor brings their client to the neighborhood, what's going to motivate them and their Buyer to choose yours over the new construction also available?
A new home will usually have a 1 or 2 yr warranty. A resale will not have the full warranty, and even if you purchase a home warranty, the actual coverage/ease of use sucks vs a builder warranty.
on the other hand, the stuff that shows up quickly has presumably already been addressed. I ended up having a list of about a half dozen things that the builder fixed around the 6 month mark - they were actually great to work with and coordinated all of the various trades so I just had to be home from work one day to get it all taken care of. I ended up not needing to have them come back before the 1 year mark, because there wasn't anything else that needed to be fixed that would have been under warranty.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.